Citizens Call for Cigarette Tax Increase At Capitol Hill Rally; `Up In Smoke' Rally Participants Urge Cigarette Tax Hike For Health and Dollars.

Business Editors/News & Political Writers

NASHVILLE, Tenn.--(BUSINESS WIRE)--June 18, 2002

Members of the Campaign for a Healthy and Responsible Tennessee (CHART) and other concerned citizens called on state legislators to raise Tennessee's cigarette tax at the "Up In Smoke" rally on Capitol Hill today.

Tennessee's cigarette tax has remained at 13 cents since 1969, one of the lowest cigarette taxes in the nation and well below the national average of 52 cents. CHART is calling for an increase of 30 cents, which according to the state office of Fiscal Review would raise an additional $167 million for the state's coffers.

More important, a cigarette tax increase would make a significant impact on Tennessee's teen smoking rate, which ranks among the highest in the U.S. (41 percent of Tennessee high school students are currently using tobacco products, and one in three young smokers will eventually die from a smoking-related illness).

A study by the Campaign for Tobacco-Free Kids shows that every 10 percent increase in the price of cigarettes will reduce overall cigarette consumption by three to five percent and reduce youth smoking by about seven percent. In Maryland, a 30-cent cigarette tax increase in 1999 led to a 30 percent decline in 10th grade smoking rates.

"Every hour of every day, another Tennessean dies from a smoking-related illness - more than 9,000 people every year," said Marianne Bouldin, CHART's executive director. "We must do everything we can to keep young people from becoming addicted smokers, and one of the best ways to do that is to make cigarettes more expensive by raising the cigarette tax. It's time to stop protecting Big Tobacco and start protecting our children. At a time when our state is struggling to make ends meet, the extra funds a higher cigarette tax would produce is a real bonus we can't ignore."

Tennessee citizens are not alone in calling for a cigarette tax increase. In fact, 12 states have raised their cigarette taxes this year alone, and four others upped their tobacco taxes in 2001.

Polls conducted by CHART show that Tennesseans are firmly in support of a cigarette tax increase. A survey released by CHART in May showed 65 percent of registered voters in Tennessee supported such a measure.

"We are pleased that the General Assembly will have an opportunity to vote for such an important public health measure," said Bouldin, "but we must make sure we make the most of this opportunity by raising the tax significantly enough to make a real difference."

CHART is a cooperative effort of the American Cancer Society, American Heart Association, American Lung Association, and more than 35 other Tennessee health and community organizations. CHART's mission is to improve the quality of life for all Tennesseans by preventing and reducing disease, disability and death caused by tobacco use. For more information on CHART, visit www.tennesseechart.org.

In 2001, four states passed significant increases in their tax on a pack of cigarettes:

State             Amount of Increase        Old Tax           New Tax
-----             ------------------        -------           -------
Maine             26 cents                  $.74              $1.00
Rhode Island      29 cents                  $.71              $1.00
Washington        60 cents                  $.825             $1.425
Wisconsin         18 cents                  $.59              $.77

In 2002, 12 states have already passed substantial increases in their tax on a pack of cigarettes:

State             Amount of Increase        Old Tax           New Tax
-----             ------------------        -------           -------
Connecticut       61 cents                  $ .50             $1.11
Hawaii            40 cents                  $1.00             $1.40
Illinois          40 cents                  $ .58             $ .98
Kansas            55 cents                  $ .24             $ .79
Louisiana         12 cents                  $ .24             $ .36
Maryland          34 cents                  $ .66             $1.00
Nebraska          30 cents                  $ .34             $ .64
New York          39 cents                  $1.11             $1.50
Ohio              31 cents                  $ .24             $ .55
Rhode Island      50 cents                  $1.00             $1.50
Utah              18 cents                  $ .515            $ .695
Vermont           75 cents                  $ .44             $1.19